Replies to post #19897 on Advanced Micro Devices Inc (AMD)

[Elmer Phud]

HailMary -

I just had to enforce one of my own rules today. I was short EMC Dec $13 puts and it crossed below $13. I always roll when a put drops below the strike price. I rolled it to April $12s and put some cash in my pocket, or I should say bought some more EMC. I did the same on AMD last week. Once you break a rule it's a lot easier the next time...

[yourbankruptcy]

HailMary, I thing your position is overexposed to drops. I never did that for over a year.

If you go long $19 calls you must go short $16 calls to compensate the time value loss.

If you buy $19 protection calls and write naked puts, you don't need long position at all. You are exposed to run up. You have time value compensated. You have fixed entry point if it goes down. You must just keep cash and catch dips. Well, maybe too late to sell now, it already gave up most gains... Do you want to write calls?

My position in AMD is much more conservative:

long shares (no clue what's average is, some of them I hold for 1.5 years and wrote calls many times)
short Dec $17 calls (sold at well over $1, maybe $1.30)
nice pile of cash to go long on the dip